Hot Shoppes, Inc. and Subsidiaries
CONSOLIDATED INCOME AND EARNED SURPLUS
for the 52 weeks ended July 26, 1964 and July 28, 1963
NET INCOME BEFORE TAXES ON INCOME
Cost of sales, selling and operating expenses
Administrative and general expenses
Taxes—payroll and other
Depreciation and amortization
Interest and finance expenses
$ 5,420,807 $ 4,019,592
FEDERAL AND STATE INCOME TAXES (Notes 2 and 3)
(Including $915,962 and $711,151 deferred taxes)
$ 7,586,643 $ 7,066,695
4% STOCK DIVIDENDS (amount transferred to capital stock
and capital surplus) (Note 4)
The accompanying notes are an integral part of this statement.
TO THE STOCKHOLDERS AND BOARD OF DIRECTORS, HOT SHOPPES, INC.:
We have examined the statement of consolidated financial condition of HOT SHOPPES, INC. (a Delaware corporation) and
subsidiaries as of July 26, 1964, and the related statements of consolidated income and earned surplus for the fifty-two weeks
then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such
tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying statement of consolidated financial condition and statements of consolidated income and
earned surplus present fairly the financial position of Hot Shoppes, Inc. and subsidiaries as of July 26, 1964, and the results
of their operations for the fifty-two weeks then ended, in conformity with generally accepted accounting principles applied on
a basis consistent with that of the preceding period.
Washington, D.C. ARTHUR ANDERSEN & CO.